Property Stocks Lead China Rally as Stimulus Measures Lift Mood

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(Bloomberg) -- Chinese stocks jumped after the nation rolled out further property support measures, the latest in an intensifying campaign to rescue to beleaguered sector that’s been dragging down the economy. Most Read from BloombergDiamond Prices Are in Free Fall in One Key Corner of the MarketMercedes Bets on Range Boost in Swipe at Tesla’s EV LeadershipBurning Man Death Under Probe With Thousands Still StrandedZelenskiy Says He’s Removing Ukraine Defense Chief in RevampTesla’s $41,000 Model

The Hang Seng China Enterprises Index gained as much as 3.6%, with property names Longfor Group Holdings Ltd. and China Resources Land Ltd. leading the advance. A Bloomberg Intelligence gauge of developer shares surged more than 8%. The CSI 300 Index of onshore China shares rose 1.7% to add to its gains Friday, when Hong Kong’s stock market was shut due to a typhoon.

“We believe this will trigger a short-term rebound in sales among all tier-1 cities, as this unlocks some previously suppressed upgrade demand,” JPMorgan Chase & Co. analysts including Karl Chan wrote in a note. While momentum can cool afterwards, “this easing can still at least stabilize sentiment, which is an essential first step in avoiding further deterioration,” they said.

Chinese builders’ dollar bonds rose at least 2 cents Monday, according to credit traders. As of 10:29 a.m., Dalian Wanda Group Co. unit’s 7.25% note due 2024 rose 5.9 cents to 68.2 cents Monday after gaining 14 cents last week, according to Bloomberg-compiled data.

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